Income Tax Calculator

1
Tax Calculation
2
What is Income Tax?

• An income tax is a tax imposed on individuals or
  entities (taxpayers) that varies with respective
  income or profits (taxable income).
• Income tax generally is computed as the product
  of a tax rate times taxable income. Taxation
  rates may vary by type or characteristics of the
  taxpayer.
• The tax rate may increase as taxable income
  increases (referred to as graduated or
  progressive rates).
• The tax imposed on companies is usually known
  as corporate tax and is levied at a flat rate.

3
How it Works?
Income tax is applied to both earned
income (wages, salaries and commission) and
unearned income (dividends, interest and
rents). The U.S. and many other countries employ
a progressive income tax system in which
higher income earners pay a higher tax
rate compared to their lower earning
counterparts. The intent of progressive systems
is to distribute wealth more evenly across a
population.
4
How to Calculate Tax?
Income Tax is the amount of money you are liable
to pay in the form of tax depending on the
tax-slab you fall under depending on your
income. In order to calculate the exact amount
of tax is compute your exact taxable
income. After which final tax payable is
calculated by applying the applicable tax rates
in force and deducting the taxes directly. All
the above can be done by using an Income Tax
Calculator.